Pubdate: Fri, 11 Jun 2010
Source: Morgan Hill Times (CA)
Copyright: 2010 Morgan Hill Times
Contact:  http://morganhilltimes.com/
Details: http://www.mapinc.org/media/3809
Author: Jonathan Partridge
Bookmark: http://mapinc.org/topic/Dispensaries

AS POT CLUB LEGAL BATTLE APPROACHES, MEDILEAF EXPANDS

More than seven months after MediLeaf opened its doors  without city 
permission amidst a splash of controversy,  the Gilroy-based medical 
marijuana dispensary hardly  receives notice from passersby.

Yet directors of MediLeaf, which has added two  dispensaries in San 
Jose, claim it has received more  than 4,000 members since it opened 
Nov. 9. Meanwhile,  its legal challenges continue, as the City of 
Gilroy  will seek a motion against MediLeaf on July 1 that  would 
shut down the dispensary, and MediLeaf is in the  midst of a lawsuit 
against its erstwhile landlords -  former Morgan Hill Mayor John 
Sorci and his wife, Toni.

According to a city lawsuit, the dispensary opened  without a 
business license at 1321 First St. on Nov. 9  after the City Council 
rejected an ordinance to  regulate such operations, effectively barring them.

"Just because somebody complains about it doesn't mean  can open up 
without proper permits," Mayor Al Pinheiro  said.

MediLeaf directors have maintained that the dispensary  is a 
nonprofit model and therefore does not require a  business license. 
City officials have said that is not  the case, claiming that 
dispensary directors knowingly  defied city zoning laws. As an 
example, local churches,  the Salvation Army and Goodwill have all 
gone through a licensing process, even though they don't have to 
pay  licensing fees.

Judge Kevin Murphy denied the city a preliminary  injunction to shut 
down MediLeaf on Dec. 15, allowing  it to continue operating while 
litigation is pending.

On July 1, the city hopes to obtain a "summary  judgment," which 
would indicate that no legal facts are  in dispute, said Andy Faber, 
the attorney who is  representing the city against MediLeaf. If that 
were the case, the city would be able to shut down the  dispensary, Faber said.

Attorneys for MediLeaf maintain that the dispensary has  been acting 
legally and has caused the city no harm.

"There have not been marijuana addicts sleeping in the  streets," 
said James Roberts, a San Jose-based attorney  representing the dispensary.

He did not know of a single complaint made to police  about the 
dispensary since it began operating, he said.

Batzi Kuburovich, one of MediLeaf's co-directors, said  the 
dispensary actually has improved the west Gilroy  shopping center 
where it resides by cleaning up the  corner of the lot where it stands.

MediLeaf is still undergoing inspections, but it has  obtained a 
building permit after lowering sinks,  placing handrails in the 
bathrooms and conducting other  miscellaneous tasks, co-director Neil 
Forrest said.

It also has scaled down its size to cut costs, taking  up only part 
of the building it occupies at 1321 First  St., with plans to sublet 
the remaining space, Forrest  said.

Konni Thomas, owner of First Street Coffee, which sits  in the same 
shopping center as MediLeaf, said she still  is not thrilled about 
having a pot club behind her  business, but initial fears about 
negative impacts have  been unfounded.

"It's like it's nonexistent or something," she said.  "It's just 
quiet. It doesn't seem any different."

Meanwhile, MediLeaf has kept busy with two additional  dispensaries 
in San Jose - one at 1340 Meridian Ave. in  Willow Glen and one at 
2129 S. 10th St. in central San  Jose.

San Jose has decided not to crack down on dispensaries  unless they 
are creating a nuisance, said Michael  Hannon, a San Jose code 
enforcement official. However,  that may change as the city is about 
to consider a  dispensary ordinance, he said.

San Jose does require dispensaries to pay a business  tax, but 
MediLeaf has done so, according to city  finance officials.

MediLeaf has been working with the City of San Jose on  drafting the 
wording of the city's dispensary  ordinance, Kuburovich said.

Meanwhile, he described the situation in Gilroy as "an  uphill battle."

"It's hard enough to open a not-for-profit without any  obstacles or 
barriers," he said.

MediLeaf also has filed a small-claims suit against its  former 
landlord, John and Toni Sorci, after they  allegedly failed to pay 
back $5,000 in rent for a  building that they had leased to another business.

MediLeaf signed an agreement with John Sorci on June 1,  2009, to 
begin leasing 7581 Monterey St. on Sept. 1,  2009. However, the city 
granted a business license to  Dollar Store and More for the same 
location in August,  Kuburovich said.

MediLeaf never occupied the building, and MediLeaf  representatives 
only had one meeting there, he said.

The Sorcis' son, Sal Sorci, contended Thursday that his  family only 
allowed Dollar Store and More to use that  building after MediLeaf 
backed out of their agreement,  opting to use their current building 
at First Street  instead. At the time, MediLeaf representatives said 
they could not use the building because they had failed  to receive 
approval from the city government, he said.

"It was a big set-up," Sal Sorci said.

Kuburovich disputed those claims, saying that Sal Sorci  can be "misleading."

Judge Gregory Saldivar on Thursday postponed making a  decision on 
the case at the South County Courthouse  after receiving a letter 
from Sal Sorci that indicated  John Sorci was being hospitalized 
after receiving knee  surgery. The hearing was continued to July 15.

Meanwhile, both the city and MediLeaf are gearing up  for the July 1 
hearing in San Jose.

"We are battling the summary judgment, and we believe  the city is 
wasting its money," Kuburovich said.
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MAP posted-by: Jay Bergstrom